A Manatt team, led by Employment and Labor Leader Esra Hudson, secured a favorable and critically important settlement for Blake Lively in her case against Justin Baldoni and Wayfarer Studios.

Lively’s claims focused on alleged retaliation and related misconduct arising after she raised concerns about inappropriate behavior during production of the film It Ends With Us. As the case progressed, the court preserved her core retaliation claims, finding that key factual questions warranted consideration by a jury. Lively’s affirmative claims were resolved in the settlement, which was announced in a joint statement of the parties. The settlement preserved one motion that is currently before the court, relating to Lively’s claims under the Weaponized Defamation Lawsuits Act, codified in California Civil Code Section 47.1, which shields individuals who speak out about sexual assault, harassment or discrimination from retaliatory defamation claims.

The motion arises from Lively’s successful defense, led by Manatt, against Baldoni’s $400 million countersuit, which the court dismissed last year. Section 47.1 imposes severe and mandatory penalties against plaintiffs, like Baldoni and the other Wayfarer Parties, who unsuccessfully file retaliatory defamation actions against sexual harassment and retaliation complainants, like Lively. The parties agreed to submit the imposition of penalties – including attorneys’ fees and costs, treble damages and punitive damages – to the court for final and binding adjudication, as the last step in the litigation and settlement process.  

“This settlement is a resounding victory for Blake Lively. By agreeing to this settlement, and waiving their right to appeal, Justin Baldoni and every individual defendant now face personal liability for abusing the legal system to silence and intimidate Ms. Lively,” said Hudson and co-counsel Michael Gottlieb of Willkie, Farr and Gallagher. “And by admitting that Ms. Lively’s concerns ‘deserved to be heard,’ the defendants have ended once and for all the fiction that Ms. Lively ‘fabricated’ claims of sexual harassment and retaliation. From day one Blake Lively’s mission was clear: expose and hold accountable those who weaponize smear campaigns and retaliatory lawsuits to intimidate and silence survivors. That mission continues.”

The Manatt team, led by Hudson, included partners Stephanie Roeser, Sarah Moses, Matthew Bruno and Naeun Rim, and associates Sareen Armani, Katelyn Climaco, Katherine Herman, Jake Kim and Sarah Zeiger.

Learn more about the settlement here.

Manatt was recognized by the American Health Law Association (AHLA) on its 2026 Top Honors list for continued investment in health law excellence and the professional development of its team members.

AHLA's Top Honors list recognizes law firms, organizations, health plans and businesses that have continually sustained affiliation with AHLA, one of the nation's largest educational nonprofit organizations dedicated to legal issues in the health care field. The recognition reflects Manatt's ongoing commitment to advancing health law and supporting the professional growth of its attorneys and advisers.

Read the full AHLA Top Honors list here.

Manatt CEO and Managing Partner Donna Wilson was featured in The American Lawyer, where she highlighted the Firm’s 2025 strategic growth successes. In the article, Wilson emphasized how the Firm’s disciplined, long‑term strategy and continued investment in its people and technology are translating into rising net income and pushed Manatt past the $500 million gross revenue mark for the first time.

Wilson pointed to Manatt’s steady growth across several of its key practices—including white collar and civil litigation, health care, financial services, AI, privacy and data security, and corporate transactions—reflecting an ongoing dedication to expanding the Firm’s legal and consulting work focusing on the industries and issues most impacting clients. She discussed how this success is a culmination of the Firm’s five-year strategic plan set forth during her first term as CEO and Managing Partner.

Manatt maintains its unique legal and consulting model as a key driver of its success, enabling teams to deliver holistic legal and business insights to clients. Strategic investments in trial capabilities, consulting professionals and technology have strengthened the Firm’s position as a national powerhouse and trusted partner to clients navigating complex regulatory, financial and operational challenges.

Wilson also addressed how the Firm is continually strengthening artificial intelligence (AI) fluency throughout its platform, supporting clients as they face both increasing opportunities and risk, especially as AI converges across health care, financial services, entertainment and technology. “AI is a huge issue, and we’re guiding our clients with respect to the ramifications of that,” Wilson said.

Read the full article here.